What's Going On With SoFi Technologies Stock Monday?

SoFi Technologies Inc. SOFI shares reversed their gains after the company reported fiscal first-quarter 2024 results on Monday.

Adjusted revenue increased 26% year-on-year to $580.648 million, beating the consensus of $555.997 million. The adjusted EPS of $0.02 beat the consensus of $0.01. 

SoFi added 622,000 new members in the quarter, bringing its total member count to over 8.1 million (+44% Y/Y). 

SoFi also added over 989,000 new products in the quarter, for a total of over 11.8 million products (+38% Y/Y) at the end of the quarter.

In the Financial Services segment, total products rose by 42% Y/Y to 10.1 million. 

SoFi Money (including Checking and Savings and cash management accounts) rose 61% Y/Y to 3.9 million products. 

SoFi Relay grew 64% year-over-year to 3.6 million products, and SoFi Invest grew 1% year-over-year to 2.2 million products. When adjusted to exclude the accounts of its now-closed digital assets business, total products increased 24% year-over-year.

Adjusted EBITDA rose by 91% Y/Y to $144.39 million, representing a 57% incremental EBITDA margin.

Total deposits grew 16% year over year to $21.6 billion at the end of the quarter, with more than 90% of SoFi Money deposits (including Checking and Savings and cash management accounts) coming from direct deposit members.

Outlook: SoFi projects second-quarter adjusted net revenue of $555 million—$565 million (versus consensus of $580.73 million) and adjusted EBITDA of $115 million—$125 million.

For the full year 2024, SoFi reiterated that the Tech Platform and Financial Services segments combined will grow at least 50%, and Lending revenue will be 92% to 95% of 2023 levels. 

It projects an adjusted EBITDA margin of approximately 25% by year-end (down from prior 30%), which equates to a range of $590 million – $600 million (prior $580 million – $590 million) for the year. It expects GAAP EPS of $0.08 – $0.09 (prior $0.07 – $0.08) (versus consensus of $0.08).

SoFi Technologies stock gained 44% in the last 12 months. Investors can gain exposure to the stock via VanEck Social Sentiment ETF BUZZ and Schwab Strategic Trust Schwab Crypto Thematic ETF STCE.

Price Action: SOFI shares are down 10% at $7.08 at the last check Monday.

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